It has been said that the way that insurance companies weigh a credit report targets people on the low end of the income bracket. This is because, even if a credit report lists everything in good standing, car insurance companies will detract points for things that might not necessarily be bad, but don’t raise credit in their eyes. For example, financing companies, which are most often used by low-income people, are bad according to car insurance companies. And they take away points from anyone who doesn’t have a major credit card, regardless of other payment history. Most families have major credit cards, but less than half of low income families do.

The impact of credit scoring being brought into the car insurance business has been worst on minorities, and in many states there have been questions raised as to whether or not the practice is discriminatory. Insurance companies deny that it is so, and Texas ruled that it had no right to regulate the issue, while in Florida it was decided that companies must prove that it isn’t discriminatory.

However, the fact is that most people stand to benefit from credit scores being brought into the decision. Two-thirds of car insurance customers will actually see their premiums go down as a result of the new credit report weighing. And most people who do see a rise in their premiums will see one of only a little over a hundred dollars. However, it has been shown that benefits vary widely among companies, so it makes you wonder whether or not, with such big differences, companies can predict the amount of claims someone is going to make based on their credit score.